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ARTICLE · 04 JANUARY 2022

CFPB Closes Online Lending Fintech For Violating ECOA And CFPB Consent Order

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On December 21, an online lending fintech agreed to a stipulated final judgment with the CFPB to resolve a September 2021 complaint alleging that the company deceived consumers and violated the Equal...

United StatesTechnology
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Matthew T. Lin
Matthew T. Lin
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On December 21, an online lending fintech agreed to a stipulated final judgment with the CFPB to resolve a September 2021 complaint alleging that the company deceived consumers and violated the Equal Credit Opportunity Act ("ECOA") (we discussed this complaint in an earlier Consumer Finance & FinTech Blog post here). The stipulated final judgment prohibits the company from making new loans, collecting on outstanding loans to harmed consumers, selling consumer information, and making misrepresentations when providing loans or collecting debt or helping others that do so. The company also agreed to a $40,500,000 suspended monetary judgment, and a $100,000 civil penalty based on its limited ability to pay.

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